The slowdown in the world economy, especially the Chinese one, which is the country with the highest demand for fossil fuels, will have a negative impact on stockpiles, dropping the price considerably.
Institutional investors, and not, have started to bet downwards on both WTI and BRENT and it is very likely that this rebound is due to profit taking only. Moreover, to weigh on this scenario there is the choice of the United States to increase the extraction, compromising this sort of very unstable equilibrium that are trying to create the OPEC countries on a production reduction pact that seems to be compromised. Summing up, in the medium term we expect another descent with a target of $ 40.
In the very short term, however, the situation is different: at the technical level it has broken the dynamic resistance identified by the EMA20 daily and is aiming the next, most important, EMA200, placed about 5 dollars above the ema20.
In the very short / short period, we expect to reach the $ 60 area.
Institutional investors, and not, have started to bet downwards on both WTI and BRENT and it is very likely that this rebound is due to profit taking only. Moreover, to weigh on this scenario there is the choice of the United States to increase the extraction, compromising this sort of very unstable equilibrium that are trying to create the OPEC countries on a production reduction pact that seems to be compromised. Summing up, in the medium term we expect another descent with a target of $ 40.
In the very short term, however, the situation is different: at the technical level it has broken the dynamic resistance identified by the EMA20 daily and is aiming the next, most important, EMA200, placed about 5 dollars above the ema20.
In the very short / short period, we expect to reach the $ 60 area.